2
Greater flexibility for managing Greater flexibility for managing ED Discretionary GrantsED Discretionary Grants
The The ““Expanded Expanded
Authorities”Authorities” AmendmentsAmendments
3
GOALSGOALS::
““Expanded Expanded Authorities”Authorities”
Increase flexibilityIncrease flexibility
Increase accountabilityIncrease accountability
Reduce paperwork burdenReduce paperwork burden
Develop partnerships Develop partnerships
Promote successful project Promote successful project outcomesoutcomes
4
““Expanded Expanded Authorities” Authorities”
Pre-award CostsPre-award Costs
CarryoverCarryover
Budget TransfersBudget Transfers
Time ExtensionsTime Extensions
5
Pre-award Pre-award CostsCosts
Incurred Incurred up to 90 daysup to 90 days before budget period before budget period
beginsbegins
• NoNo prior approval required prior approval required
•Applies to New and NCC Applies to New and NCC awardsawards
6
Pre-award CostsPre-award Costs
Reasonable expectation of Reasonable expectation of receiving a grantreceiving a grant
Incurred at own riskIncurred at own risk
ED funds are not available ED funds are not available for drawdown until the for drawdown until the budget period beginsbudget period begins
Not for cost over-runs Not for cost over-runs
7
Pre-award CostsPre-award Costs
Incurred Incurred more than 90 daysmore than 90 days before budget period before budget period begins:begins:
Requires Requires prior prior approvalapproval
OKOK
8
CarryoveCarryoverr
Unexpended funds are Unexpended funds are carried over without carried over without prior approvalprior approval
For For anyany allowable cost allowable cost within the approved within the approved project scopeproject scope
finishing uncompleted finishing uncompleted activitiesactivities
new activities within new activities within scopescope
9
CarryoverCarryover
Program Office Program Office may require a may require a written statementwritten statement
•How will unexpended funds be How will unexpended funds be used?used?
•WhenWhen: At time of funding decision: At time of funding decision
•In rare cases, new funds may be In rare cases, new funds may be reducedreduced
10
Budget TransfersBudget Transfers NoNo prior approval required for prior approval required for
most budget transfersmost budget transfers
Exceptions in EDGAR:Exceptions in EDGAR:
Transfer training funds to other Transfer training funds to other categoriescategories
Transfer or contracting out any workTransfer or contracting out any work
Check OMB Cost Principles for Check OMB Cost Principles for other exceptionsother exceptions
1010%ru%rulele
11
EDGAR Prior Approval EDGAR Prior Approval RequirementsRequirements
Changes in project scope or objectivesChanges in project scope or objectives
IHE and non-profit project directors:IHE and non-profit project directors: Absence for more than 3 monthsAbsence for more than 3 months
25% reduction in time25% reduction in time
Need for additional federal fundsNeed for additional federal funds
Changes in key personnelChanges in key personnel
12
Time ExtensionsTime Extensions
Final Year:Final Year:
One-time One-time extension for up extension for up to one year to one year without prior without prior approvalapproval
Grantees should Grantees should carefully consider carefully consider time extension time extension needsneeds
13
Time ExtensionsTime Extensions
Send written notice to Send written notice to program officer:program officer:
No later than 10 days before No later than 10 days before project endsproject ends
State reasons for extensionState reasons for extension
Include revised expiration dateInclude revised expiration date
14
Time ExtensionsTime Extensions
Not just for using Not just for using unexpended unexpended fundsfunds
No change to No change to scope or objectivesscope or objectives
No additional No additional federal fundsfederal funds
15
Important RemindersImportant Reminders
Check grant terms, conditions and Check grant terms, conditions and grant award attachments for grant award attachments for possible exceptions possible exceptions
In rare circumstances, some or all In rare circumstances, some or all may be deniedmay be denied
When in doubt, call your Program When in doubt, call your Program OfficerOfficer
16
ConclusionConclusion
New spirit of partnershipNew spirit of partnership
We welcome your feedback. We welcome your feedback. Let us know what’s working and what’s not.Let us know what’s working and what’s not.
Internet address: [email protected] address: [email protected]
Focus on successful Focus on successful project outcomes!project outcomes!
18
Grant Administration Grant Administration & Payment System& Payment System
Financial Financial Management/Management/ Monitoring in Monitoring in
GAPSGAPS
19
Grant Grant Administration & Administration & Payment SystemPayment System Request Request
drawdown by drawdown by grant award grant award numbernumber
Drawdowns Drawdowns treated as treated as expendituresexpenditures
20
GranteeGrantee
receives grant award from receives grant award from ED ED administers the grant in administers the grant in accordance with ED accordance with ED regulationsregulations
DUNS number needed to DUNS number needed to participateparticipate
21
PayeePayee
Requests and manages Requests and manages fundsfunds
May be the grantee or other entity May be the grantee or other entity identified by the granteeidentified by the grantee
Needs DUNS Number to participateNeeds DUNS Number to participate
22
Payment Payment MethodsMethods
Advance Payment Advance Payment MethodMethod
U.S. Department of EducationU.S. Department of Education
Reimbursement Reimbursement Payment Payment MethodMethod
24
Cash Cash ManagementManagement
Drawn funds must be Drawn funds must be expended within three expended within three
business days after they business days after they are deposited in your are deposited in your
bank account.bank account.
25
Monitoring For Monitoring For ResultsResults Performance monitoringPerformance monitoring
Financial monitoringFinancial monitoring
26
The Results ActThe Results Act
Develop program standards & indicatorsDevelop program standards & indicators
Ties federal funding to results!Ties federal funding to results!
What is happening with the money?What is happening with the money?
The Government Performance The Government Performance and Results Act of 1993 and Results Act of 1993
(GPRA)(GPRA)
27
Track spending patterns for each grantTrack spending patterns for each grant
Grant Teams MonitorGrant Teams Monitor
**GAPS*GAPS*
Why:Why:
Identify performance problemsIdentify performance problems
Identify financial management problemsIdentify financial management problems
Work in partnership to resolveWork in partnership to resolve
28
Rate of draws:Rate of draws:
Commensurate with Commensurate with approved scope approved scope
of of work & work & project project milestones?milestones?
What Grant Teams What Grant Teams Are Looking ForAre Looking For
29
Grant for $275,000 to LLU - Grant for $275,000 to LLU - their first federal granttheir first federal grant
Project was on track, Project was on track, meeting goals and objectivesmeeting goals and objectives
Performance report indicated Performance report indicated $200,000 expended$200,000 expended
GAPS shows no funds GAPS shows no funds drawn downdrawn down
Exercise #1 - LLUExercise #1 - LLU
30
BobU received $75,000 BobU received $75,000
grantgrant
Performance report Performance report indicates $25,000 indicates $25,000 unexpendedunexpended
Program officer calls Program officer calls grantee to discuss whygrantee to discuss why
Exercise #2 - BobUExercise #2 - BobU
Bob
31
SKI receives $400,000 SKI receives $400,000
grantgrant
Key milestones being Key milestones being reached on schedulereached on schedule
GAPS indicates all $400,000 GAPS indicates all $400,000 was drawn down in first was drawn down in first three monthsthree months
Exercise #3 - SKIExercise #3 - SKI
Smarter Kids . . . Start Here!
32
When When Grant Grant Teams Teams Check Check GAPSGAPS
Throughout the life of the grantThroughout the life of the grant
At the end of each budget periodAt the end of each budget period
Before performance monitoringBefore performance monitoring
Before technical assistance contactsBefore technical assistance contacts
33
Red FlagsRed Flags
Not drawing down funds//Regular Not drawing down funds//Regular draw downs not being madedraw downs not being made
Is work being performed?Is work being performed?
Are performance indicators being met?Are performance indicators being met?
Is there a financial management Is there a financial management problem?problem?
Work is being performed, but payee is Work is being performed, but payee is not drawing down funds not drawing down funds
34
Red FlagsRed Flags
Large amount of unobligated funds Large amount of unobligated funds at end of budget periodat end of budget period
Has grantee made substantial Has grantee made substantial progress?progress?
Other issues:Other issues:
Did project have a late start (Year 1) ?Did project have a late start (Year 1) ?
Did key personnel leave the project?Did key personnel leave the project?
35
Red FlagsRed Flags Excessive Excessive
amount of funds amount of funds drawn downdrawn down
Draws exceed Draws exceed immediate need immediate need
(3-day rule)(3-day rule)
Draws not in line Draws not in line with project scope & with project scope & milestonesmilestones
36
Project Directors: Project Directors: Communicate with your Communicate with your Fiscal StaffFiscal Staff
ConclusionConclusion
Ensure that the drawdowns Ensure that the drawdowns in GAPS reflect status of in GAPS reflect status of projectproject
Grant Teams rely on Grant Teams rely on drawdown in GAPS to drawdown in GAPS to monitor your projectmonitor your project